TABLE OF CONTENTS RESEARCH TOPIC........................................................................................................................1 INTRODUCTION...........................................................................................................................1 METHODOLOGY..........................................................................................................................2 DATA ANALYSIS/ RESULTS.....................................................................................................5 DISCUSSION...............................................................................................................................14 CONCLUSION.............................................................................................................................15 RECOMMENDATIONS...............................................................................................................16 Appendix.......................................................................................................................................17 REFERENCES..............................................................................................................................19
Executive Summary This report investigateslevel of impact social media websites and applications have had on consumer behaviour in hospitality sector. It also determines growth of organisation after utilization of social media as tool to influence customers. Study analysed that data taken from 20 existing users of social media applicant’s websites across countries. Results clearly indicate that social media applicants like Facebook is significantly related to consumer behaviour and purchase intentions. Consumers are highly dependent on information of social media to buy products and services. This study on existing researcher of SMM by analysing direct influence of these applicants on relationship between Thomas Cook and customers in context of hospitality industry.
RESEARCH TOPIC “To what extent does social media influence consumer’s purchases?” INTRODUCTION Social media is all about providing opportunities for people to share their views, experience, ideas, thoughts and opinion with others. It has removed spatial and time constraints thatwereinherentintraditionalmethodofcommunication(ZengandGerritsen,2014). Consumer behaviour is classified as decisions and actions that influence purchase decisions of an individual. In last years, social media has achieved phenomenal success: Facebook, a social media networking website, claims that its active users reached 1.3 billion world-wide (Husnain and Toor, 2017). Twitter, a micro blogging website hosts 225 million users who post 500 tweets per day.In accordance with tourism context, 67% of UK travellers seems to consider reviews given by other travellers during travel related search process (Hudson and et.al., 2015). Tourism and hospitality is one of the fastest growing economic sectors on global basis, producing 9% of GDP and generating 1.4 trillion of world's exports. Social media has also influenced consumer behaviour from acquisition of information to post purchase intentions like dissatisfaction statement or behaviours about a product or enterprise (Inversini and Masiero, 2014). Websites like Facebook, Twitter and Pinterest provide an opportunity for consumer to make comparison between products and service provided by different companies (Leung and et.al., 2013). It has also enabled business to engage and interact with potential consumers, encourage an increased sense of intimacy with consumers and build important relationships with potential customers (Leung and Bai, 2013). In this research project, scholar has carried out study on analysis of extent to which social media influence consumer behaviour and purchase decisions in hospitality sector (.Leung, Bai and Stahura, 2015). Thomas Cook PLC is a British hospitality sector enterprise which has its business operations in many countries (Fotis, Buhalis and Rossides, 2012). Different social media applications are used by Thomas Cook for promotion of its products and services among target people. Project Aim:To evaluate level of impact social media websites and applications have had on consumer behaviour in hospitality sector- A study on Thomas Cook PLC. Project Objectives: 1
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To understand concept of consumers purchase decisions and behaviour. To analyse issues faced by consumers on social media websites and applications. To identify different social media application and website used by Thomas Cook Plc. To evaluate level of impact social media websites and application has on consumer behaviour at Thomas Cook PLC. To recommend strategies for Thomas Cook to improve its social media application for providing positive influence on consumer behaviour. Research Questions What is concept of consumer behaviour and purchase decisions? Which issues are faced by consumer on social media? Which social media applications and websites used by consumer of Thomas Cook? Up to what extent does social media influence consumer’s behaviour towards Thomas Cook? Rationale of study Main reason behind conducting this research is that scholar has a specific interest in this area of topic and there is wide scope of study.Various other authors and researcher have conducted study on similar topic which help in analysing appropriate concept and direction of research.This research will also help in developing skills and capabilities of undertaking challenges. Huge secondary data is available on this study, which helps scholar by developing its understanding and identify impact of social media on consumer behaviour.Study will help in developing, comprehending, analysing, technological, analytical, conceptual and motivational skills.This framework also enabled scholar to complete research and achieving purpose of evaluating impact of social media application and websites on consumer behaviour and purchase decisions. METHODOLOGY 1. Research Philosophy 2
It is a philosophy which is used in analysis of methods of collecting of data for particular research. This method helps in dealing with source, development and nature of whole knowledge about project. This process helps in identifying all core concepts of project. Research philosophy can be done in various method, for example, pragmatism, realism, positivism or interpretivism (Choy, 2014). For this project work, researcher will use interpretivism methodology to perform functions. This method is very useful as it will help them in studying phenomenon in their natural environment. It assists in analysing small samples in-depth and performs qualitative investigations. 2. Research Design It is a systematic approach which is used by researchers in conducting their study. It consists of various components which are identified during research process. An effective research design should have a strategic methodology which can be useful for researcher. There are four different designs to perform this method, i.e., exploratory, descriptive, explanatory and evaluation research (Fletcher, 2017). For this project, researcher has opted for explanatory method. This process has been chosen as researcher has designed a questionnaire which includes factors like what, how and why in it, which helped in getting better outcomes. 3. Research Approach This is a process which includes detailed procedure of whole research project which can include, methods of data collection, its analysis and interpretation as well. This is divided into two parts, i.e., one is collection of data and second is analysis of that data or reasoning. Researcher will apply inductive approach of analysis for this work. Deductive approaches is used by scholar for testing of assumptions made to evaluate the level of impact social media applications has on consumer behaviour (Flick, 2015). This process will include steps like, analysing secondary data, studying outcomes from that analysis and finally developing a theory based on that research. 4. Data Collection Data collection is a process which is generally used in collecting all information which is related to work in finding solutions to all research problems and also analysing final outcome 3
(FOTIS, 2015). Data collection can be performed in two ways, i.e., primary and secondary data collection method. For this, project researcher has opted for primary method for collecting all required data (Glesne, 2015). In this process, simple random sampling technique is being used in which questions have been asked with chosen 20 random consumers. Based on that result of this methodology, final outcome will be interpreted. 5. Ethical Considerations This play a very important in research work and has to be taken care very seriously. Ethical consideration includes all norms and standards which has to be followed properly to conduct research in right manner. It can help in determining acceptable and unacceptable behaviour in research work. For this project, researchers has used all ethical resources which is required for completion of this project work. Proper referencing is also done very carefully (Panneerselvam, 2014). Researcher has followed all ethics which is required in this, such as, performing research methodology, data collections methods, etc. This process helps in reducing effect of falsifying of data which is very crucial for project work. 6. Reliability and Validity Reliability refers to that process which helps in understanding that all final results are reliable and valid. Researcher has asked questions to 20 random consumers and from their answer, most reliable issue has been selected for research work which is valid also as per given answers by them (Smith, 2015). It has been taken care of that all final outcomes of this research work is valid and reliable which is easily understandable. 7. Limitations There are so many limitations which has been arisen during project work. First and most important limitation is lack of time. If there was more time than researcher could able to conduct research with more methods which will be helpful in getting better and effective results. Another factors which has affected them is that some chosen consumers are not that confident in answering question which might affect final result for this project (Choy, 2014). Coordinating with fellow researcher was a tough task as there were many times when there was a miss match between their ideas. 4
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DATA ANALYSIS/ RESULTS Theme1: Customers have used social media application and website for getting information. Haveyoueverusedsocialmediaapplicationand website for getting information?FrequencyPercentage Yes1050.00% No630.00% Not sure420.00% Total20100.00% Interpretation:Online questionnaire survey is conducted by researcher to evaluate level of impact provided by social media website and application on consumer purchase decisions. From sample, 50% respondents have stated “Yes' because use social media application and website for getting information. 30% respondents have denied and 20% customers was not sure about statement. Hence, it is interpreted that customer use SM website and apps for getting information about products and services of Thomas Cook. Theme2: Information provided on social media application is correct and helps in making appropriate decisions. Do you think that information provided on social mediaFrequencyPercentage 5 AgreeDisagreeNeutralTotal 0 2 4 6 8 10 12 14 16 18 20 12 5 3 20 Frequency
application is correct and helps in making appropriate decisions? Agree1260.00% Disagree525.00% Neutral315.00% Total20100.00% Interpretation: Analysis of table provide understanding that, 60% of respondents are “Agree” because they think that information which is provided on social website is relevant and provide positive impact on consumer's purchase decisions and behaviour.Whereas 25% are “disagree” and 15% are not sure about the statement. Hence, it is clear thatinformation provided on social media application is correct and helps in making appropriate decisions. Theme 3 Consumer highly dependent on social media applications and website to buy products and services. Up to what extent you are dependent on social media to buy products and services?FrequencyPercentage High1050.00% 6 HighLimitedLowNot dependent 0 1 2 3 4 5 6 7 8 9 10 10 5 3 2 Frequency
Limited525.00% Low315.00% Not dependent210.00% Total20100.00% Interpretation:From above table, it is analysed that 50% respondents have stated that they are highly dependent on social media website to get information about products and services of hospitality firms like Thomas Cook. Whereas 25% have stated “Limited”15% have viewed “Low” and remaining 10% specified that they are not dependent on social applications and websites.Thus, it can be said that people are highly dependent on social media websites to get information. Theme 4: Thomas Cook provide appropriate information about its products and services on social media websites and applicants. DoesThomasCookprovideappropriateinformation about its products and services on social media websites and applicants?FrequencyPercentage Agree840.00% Disagree735.00% 7 High Limited Low Not dependent 012345678910 10 5 3 2 Frequency
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neutral525.00% Total20100.00% Interpretation: Above table shows that, 40% customer are “Agree” that Thomas Cook provide information about its products and services on social media websites and applicants. 35% respondents are “Disagree” with the statement whereas 25% are Neutral. Hence, it can be stated that Thomas Cook provide appropriate information about its products and services on social media websites and applicants. Theme5:Information about price was helpful in making decisions about values of products and services. How helpful was provided information in making your decision?FrequencyPercentage Price840.00% Local convenience315.00% Amenities315.00% Accommodations630.00% 8 8 7 5 Agree Disagree neutral
Total20100.00% Interpretation: From above online survey, It is analysed that 40% respondents have voted for “Price”, 15 % have stated “local convenience”, 15%for Amenities and 30% for Accommodations.However, information about price was helpful for consumers in analysing values and quality of products and services. It helps in making comparison of Thomas Cook with other company. Theme 6: Customers are agreed that information on social media website is sometimes biased. Indicateextent to which you agree or disagree with statements regarding present websiteFrequencyPercentage This information on social media website is sometimes biased.1050.00% I trust information present on website525.00% Not sure525.00% Total20100.00% 9 PriceLocal convenienceAmenitiesAccommodations 0 1 2 3 4 5 6 7 8 8 33 6 Frequency
Interpretation:From survey of 20 customers, 50% customers think that information on social media website is sometimes biased and provided for benefit of organisation. Further, 25% consumers have stated that they trust information present on website whereas 25% respondents are not sure about the statement. Hence, Customers are agreed that information on social media website is sometimes biased. Theme 7 Facebook is mainly used by consumers to get information about offers and tour packages of Thomas Cook. Which social media application you have mainly used to get information?FrequencyPercentage Facebook840.00% Twitter525.00% SinaWeibo525.00% Pinterest210.00% Total20100.00% 10 0 2 4 6 8 10 10 55 Frequency
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Interpretation: 40% response have stated that “Facebook” application is highly used by them to get information about products and services whereas other 25% respondents use Twitter, 25% Sina Weibo and 10% use Pinterest. Hence, Facebook has large number of users and mainly consumers decisions are highly based on information on provided on social media. Theme 8: Consumer have faced privacy issues in getting information about Thomas Cook on Social media. Whichtypeofissuesyouhavefacedingetting information about Thomas Cook on Social media?FrequencyPercentage Security525.00% Privacy1050.00% Fraud525.00% Total20100.00% 11 FacebookTwitterSinaWeiboPinterest 0 1 2 3 4 5 6 7 8 8 55 2 Frequency
Interpretation:From above statement, 25% respondents have viewed that they face security issues,50%customershavefacedprivacyproblemsand25%respondentshaveanalyse fraudulent activities on websites. Hence, it is clear that privacy issues have been faced by consumer in getting information about Thomas Cook on social media websites. Theme 9: Consumer would like to buy products and service of Thomas Cooks on basis of information on social media. Based on information on social media, Would you like to buy products and services of Thomas Cook?FrequencyPercentage Yes1260.00% No315.00% Not sure525.00% Total20100.00% 12 SecurityPrivacyFraud 0 1 2 3 4 5 6 7 8 9 10 5 10 5 Frequency
Interpretation: From above survey, it is analysed that consumer would like to buy products and services from Thomas Cook on basis of information provided by them on social media.This statement is based on information provided by organisation to buy products and services. In this study, Majority of 60% customers have stated “Yes” as they feel that information is correct and appropriate to make decisions. 15% have denied the statement whereas 25% are not sure. Theme 10: Wide offers and range of products information is important for consumers to make decision. Whichismostimportantbenefitofsocialmedia applications in your perception.FrequencyPercentage Relevant information420.00% Wide range of products840.00% Comparison420.00% Easy Accessibility210.00% Time Saving210.00% 13 12 3 5 Yes No Not sure
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Total20100.00% Interpretation: In this analysis, 40% respondents have stated that wide offers and range of products information are provided by Thomas Cook on social media which is beneficial for customer to make decisions. 20% have stated “relevant information”, 20% states that it helps in making comparison whereas 10% respondents have stated it is time saving activity. Hence, Wide offersandrangeofproductsinformationisimportantforconsumerstomakedecision. Continuous updates are made by organisation on its page to attract customers and provide its exciting offers to influence customers. DISCUSSION The thematic analysis reveal several themes which explains influence of social media on consumer behaviour or purchase decisions at Thomas Cook.Social media application is analysed as key drivers for hospitality sector firms because it has provided high growth and recognition among customers.Outcomes derived this study demonstrate that social media serves as crucial factors in arousing purchase intentions among consumers.Role these social 14 Relevant information Wide range of products Comparison Easy Accessibility Time Saving 0 1 2 3 4 5 6 7 8 4 8 4 22 Frequency
media websites act as a mediator in this study also facilitates in explaining how organisation could use social media as a tool to increase consumer's purchase intentions. In this study, social media applications is found to have important effect on consumers purchase intentions in context of Thomas Cook. As per results, consumers of Thomas Cook always prefer to use social media applications and sites to get information about their products and services (Hudson and Thal, 2013). Information provided on social media application is correct and helps in making appropriate decisions. Trustworthiness is most important aspects that organisation needs to create among customer by ensuring that information on media must be correct not biased. Social media has also influenced consumer behaviour from acquisition of information to post purchase behaviour like dissatisfaction statement or behaviours about a product or enterprise (Ayeh, Au and Law, 2013). Websites like Facebook, Twitter and Pinterest provide an opportunity for consumer to make comparison between products and service provided by different companies. In addition, it is also realised that data provided on social media websites was helpful in making comparison between price of Thomas Cook and companies. This information about products features, design and price directly influence their perception and force them to review. Tourism and hospitality is one of the fastest growing economic sectors on global basis, producing 9% of GDP and generating 1.4 trillion of world's exports.Further, it has also provided positive influence on growth of organisation in hospitality sector and enable them to meet requirements of customers. CONCLUSION The outcomes gained from this research will be able to contribute to body of literature in different ways. First, study explores knowledge on how social media applicants and websites are related to consumers behaviour or buying intentions. In a continuously evolving technology world, it appears that Thomas Cook has also experienced rapid growth from social media usage in last few years.This support the fact that 67% percent people are very much engaged with social media website such as Facebook.In this context, social media should be used as marketing tool to successfully or positively arouse consumer behaviour and purchase intentions. Results study stated that marketers of Thomas Cook in UK needs to consider strategic role of consumer’s behaviour in arousing purchase intentions.They also need to strategically improve 15
and enhance their social media marketing communication so that maximum advantages of involving customers can be attained. RECOMMENDATIONS As perabove research analysis, it can be recommended toprofessional at hospitality sectors that for better understanding of their consumers purchasing decisions and behaviour they can analyse four basic elements, such as, demographical, behavioural, attitudinal nature of them while they purchase any product. This will help them in understanding them better and effectively. Communicating with them is another solutions which can be opted by them. There are various issues which is related to use of social media websites and applications, which has to be managed properly. It is recommended that they can use authentic websites for their utilization which can reduce risk of leaking their information on internet. Keeping touch with customers on internet will help them in reducing issues from consumers. There are different social medial platforms which can be used by Thomas Cook Plc, for example, they can use Facebook, Instagram, Twitter, etc. for promotion of their services in market. It will be very useful for them in increasing their customer rate and revenue as well. It is recommended that there will be a huge impact of social media websites and application on their consumer's behaviour of Thomas Cook Plc is that they can connect with their customers directly through these applications which will be very helpful for them in satisfying their needs and preferences. Recommended strategies for Thomas Cook which they can implement in their system for improvement of social media application which will help them in giving positive response of consumer behaviour, for example, Making their site visible on all social media platform will be very beneficial for them in increasing marketing techniques. Ensuring that their online handles are very consistent across all networks, such as, Twitter, Facebook, etc. Adding attractive advertisementsrelated to their services, writing valuable client's feedback will also help them in improvement. Providing proper and effective security measures to all social media applications will also play an important role in upgrading their system. 16
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Appendix Name: Occupation: Have you ever used social media application and website for getting information? Yes No Not sure Do you think that information provided on social media application is correct and helps in making appropriate decisions? Agree Disagree Neutral Up to what extent you are dependent on social media to buy products and services? High Limited Low Not dependent Does Thomas Cook provide appropriate information about its products and services on social media websites and applicants? Agree Disagree Neutral How helpful was FOTIS, N., 2015provided information in making your decision? Price Local convenience Amenities Accommodations Indicate extent to which you agree or disagree with statements regarding present website This information on social media website is biased. 17
I trust information present on website Not sure Which social media application used have mainly used to get information? Facebook Twitter SinaWeibo Pinterest Which type of issues you have faced in getting information about Thomas Cook on Social media? Security Privacy Fraud Based on information on social media, Would you like to buy products and services of Thomas Cook? Yes No Not sure Which is most important benefit of social media applications in your perception. Relevant information Wide range of products Comparison Easy Accessibility Time Saving 18
REFERENCES Books and Journals Ayeh, J.K., Au, N. and Law, R., 2013. Predicting intention to use consumer-generated media for travel planning.Tourism Management.35. pp.132-143. Choy, L. T., 2014.strengths and weaknesses of research methodology: Comparison and complimentary between qualitative and quantitative approaches.IOSR Journal of Humanities and Social Science.19(4). pp.99-104. Fletcher, A. J., 2017. Applying critical realism in qualitative research: methodology meets method.International Journal of Social Research Methodology.20(2). pp.181-194. Flick, U., 2015.Introducing research methodology: A beginner's guide to doing a research project. Sage. Fotis, J., Buhalis, D. and Rossides, N., 2012.Social media use and impact during holiday travel planning process(pp. 13-24). Springer-Verlag. Glesne, C., 2015.Becoming qualitative researchers: An introduction. Pearson. Hudson and et.al., 2015. The effects of social media on emotions, brand relationship quality, and wordofmouth:Anempiricalstudyofmusicfestivalattendees.Tourism Management.47.pp.68-76. Hudson, S. and Thal, K., 2013. The impact of social media onconsumer decision process: Implications for tourism marketing.Journal of Travel & Tourism Marketing. 30(1-2). pp.156-160. Husnain, M. and Toor, A., 2017.Impact of Social Network Marketing on Consumer Purchase Intention in Pakistan: Consumer Engagement as a Mediator.Asian Journal of Business and Accounting.10(1). pp.167-199. Inversini, A. and Masiero, L., 2014. Selling rooms online: use of social media and online travel agents.International Journal of Contemporary Hospitality Management.26(2). pp.272- 292. Leung and et.al., 2013. Social media in tourism and hospitality: A literature review.Journal of travel & tourism marketing. 30(1-2). pp.3-22. 19
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Leung, X.Y. and Bai, B., 2013. How motivation, opportunity, and ability impact travelers' social media involvement and revisit intention.Journal of Travel & Tourism Marketing.30(1- 2). pp.58-77. Leung, X.Y., Bai, B. and Stahura, K.A., 2015.The marketing effectiveness of social media in hotel industry: A comparison of Facebook and Twitter.Journal of Hospitality & Tourism Research.39(2). pp.147-169. Panneerselvam, R., 2014.Research methodology. PHI Learning Pvt. Ltd. Smith, J. A. ed., 2015.Qualitative psychology: A practical guide to research methods. Sage. Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review.Tourism Management Perspectives. 10. pp.27-36. Online FOTIS, N., 2015.“Use of social media and its impacts on consumer behaviour: context of holidaytravel”.[Online].Availablethrough: <http://eprints.bournemouth.ac.uk/22506/1/JOHN%20FOTIS%20-%20PhD.pdf> 20